ETF Trends
ETF Trends

So far, South Korea’s economy and related exchange traded fund (ETF) barely sidestepped a recession as government and central bank policies start to kick in.

Economic data for the first quarter revealed growth for the South Korean economy of 0.1%, which surprised many analysts who forecasted a small contraction, reports Bettina Wassener for The New York Times. But, many economists are projecting a 3% contraction for 2009.

Both Hyundai and Samsung, the largest South Korean exporter, reported diminished profits, but were still doing better than anticipated. South Korea is an export-dependent country with exports accounting for 45% of GDP.

The surprisingly upbeat economic results are also attributed to the fiscal tax cuts and spending measures, along with monetary interest rate cuts. A depreciating won has resulted in South Korea’s exporters seeing more overseas demand for their cheaper goods.

  • iShares MSCI South Korea Index (EWY): up 18.5% year-to-date; Samsung Electronics is 19.2%, Hyundai is 2.7%

ETF EWY performance

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.